The effect of rising inflation is now on gold too, buyers of gold are not available

Gold consumption in India is expected to decline by almost a quarter in November-December compared to a year ago.

Inflation is increasing continuously in the country, the effect of which is also being seen on gold. after the end of the festive season fall in demand for gold The arrival has started. Because after the end of the festive season amid rising inflation, people have stopped buying gold. Businessmen are also not getting buyers of gold in the country. According to the World Gold Council (WGC), India’s gold consumption in November-December is expected to decline by almost a quarter compared to a year ago. At the same time, due to rising inflation, the demand for gold in rural areas may also decrease. Falling demand for gold imports can also help narrow India’s trade deficit and support the rupee.

India ranks second among the largest gold consuming countries in the world. China is at number one. Lower consumer buying could impact prices, which are trading near their lowest levels in more than two years. According to sources, on October 31, gold became cheaper at Rs 50,480 in the bullion market, which had reached 52 thousand earlier this month.

Somasundaram PR, regional chief executive of WGC’s India operations, told Reuters that high inflation is likely to curb rural demand, which had begun recovering from the disruption caused by last year’s COVID-19-led lockdown. Explain that the demand for gold (excluding OTC) has reached the level of 1,181 tonnes in the third quarter. In this way, the demand for gold has registered an increase of 28 percent on a yearly basis. Increase in demand The level of annual demand for gold has reached the level before Kovid. This spurt in demand for gold came because of customers and central banks.

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India’s annual inflation rate was above 7% in the month of September. Two-thirds of India’s gold demand usually comes from rural areas, where jewelry is a traditional store of wealth. India’s gold demand in the December quarter may fall to around 250 tonnes from 343.9 tonnes a year ago. This fall could bring India’s total gold consumption to around 750 tonnes in 2022, down 6% from last year’s 797.3 tonnes.

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